CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

Which industry is likely to be concentrated with strong pricing power?

A. tobacco
B. PCs
C. homebuilding
Correct Answer: A

User Contributed Comments 2

User Comment
czar could someone please explain this ?
To-be-CFA @czar: Concentrated = No. Of firms in the market. Pricing power = Ability to influence the price of the products. Since, tobacco is an addiction, it's easy for firms to take a call on prices without feeling the pressure on sales.
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